Some Basic Facts To Know About Car Insurance

If you are a car owner, you need car insurance because it is a requirement by the law in a lot of places. But aside from following the law, it is also good to be insured because your direct losses from car accidents are covered.

A car or automobile insurance seeks to return a car?s situation before the accident occurred. For example, if you have damages on your fender or park lights, the insurance will pay for the repairs and replacement.

There are several coverage areas for car insurance that a person can get. These are the kinds you can choose from. Or you can have a combination of these:

1. Liability. This covers the damages that you have incurred against another person?s vehicle or body.

2. Collision. This pays for damages to a car or any other vehicle as a result of colliding with or hitting something.

3. Comprehensive. This covers all other damages caused by different factors other than collision.

4. Medical payments. This is a special coverage that will pay for personal injuries that happened because of a car accident.

5. Rental. This will shoulder your temporary car rental.

6. Towing. This will of course pay for the tow truck services.

You have to know that there are limitations to any kind of car insurance, no matter how expensive they are. These limitations could deductibles, set coverage amounts as well as exclusions.